Tips On How To Save Money On Car Insurance In Canada


Car insurance premiums in Canada can vary by hundreds of dollars from one insurer to another, but there are some simple steps you can take in order to lower your payments or to ensure you get the best quote possible. It does pay off to be informed and to shop around for the best insurance.

  1. Call several car insurance companies and ask what cars are cheaper to insure, then use this information when you look for a new car. Consider cars that can save you money in the long run.
  2. Live in a safe neighborhood. If you move, make sure you call your company.
  3. New drivers enjoy lower insurance rates if they have taken a driving course in the last 3 years.
  4. Drive safe! Traffic tickets have very bad impact on your car insurance and will cost you twice – when you pay them and when you renew your policy. In Canada if you park on a handicap designated spot, you will be fined $300 and this fine will be held against you at renewal time.
  5. If you get a ticket for over $70, take advantage of the opportunity to dispute it in court. Read the back of the traffic ticket and book your appointment to appear before a judge. At that point you most likely will be offered a deal to pay a reduced fine and the information about the ticket will not be entered in your driving record.
  6. After completing one year of no accidents and no claims, call several companies and ask for quotes. Don’t just assume that you are getting the best rate from you current company, even if they lower your premiums with $15-$20 a month.
  7. Pay your insurance on time and always carry it with you when you are driving.
  8. If you are driving an older car consider dropping the collision coverage.
  9. Increase the amount of your deductible in order to pay less for your auto insurance.
  10. Some companies will forgive your first accident and not increase your insurance premiums if you have safe driving record of 6-10 years. If you do have long safe driving record, make sure you ask for this bonus.
  11. If possible don’t use your car to go to work. The distance between your home and your job makes a difference, as well. If you start a new job that is closer to your home, and you are driving to work less miles, make sure you call your insurance company and tell them.
  12. If you have a driving licence from another country you may be credited for up to 3 years of safe driving. (Holders of US and Japanese Driving Licences do not have to take a Canadian licence in order to drive in Canada. Holders of licences from any other country can drive for 2-6 months depending on the province of Canada where they reside, before being required to have a Canadian licence.)

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